Welfarism and national debt

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By minas Welfarism and national debt

13 Mar: The threat of financial collapse

“U.S.is bankrupt and we don’t even know it”

Kotlikoff“Let’s get real. The U.S. is bankrupt.” So claimed Laurence Kotlikoff, professor of economics at Boston University and one of the nation’s leading authorities on Social Security, while speaking on Bloomberg Television on August 11, 2010.[i]

Referring to the International Monetary Fund’s annual review of U.S. economic policy, Professor Kotlikoff said:

But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP”.

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By minas Welfarism and national debt

06 Apr: The great international governmental Ponzi scheme

“The West has now reached the point where total private and public debt, together with unfunded government liabilities, can never be repaid by an ageing demographic. One day even debt servicing will be an issue. With fewer taxpayers and lenders, the ability to take from the future to provide for the present will end. This is when we see the final collapse of the great international governmental Ponzi scheme.” – Maurice Newman Those scary words were written by highly-credentialled Australian banker and economist, Maurice Newman (pictured), in a the following January 2013 article. “IN a bright start to the new year we are reading that the global economic outlook is improving. Setbacks are transitory. The fiscal cliff is history and the debt ceiling is bound to be lifted. Stockmarkets everywhere, even those in Europe, are rising. World leaders, after numerous false starts, ask us to believe that this time, their…

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